Exhibit 10.43
WAFER SUPPLY AND SERVICES
AGREEMENT
AMENDMENT ONE
among:
JAZZ SEMICONDUCTOR
a Delaware limited liability
company
and
SKYWORKS SOLUTIONS,
INC.
a Delaware corporation
Dated as of May 2,
2003
Confidential treatment is being
requested for portions of this document. This copy of the document
filed as an exhibit omits the confidential information subject
to the confidentiality request. Omissions are designated by the
symbol [...***...]. A complete version of this document has been
filed separately with the Securities and Exchange
Commission.
AMENDMENT ONE TO THE WAFER SUPPLY
AND SERVICES AGREEMENT
THIS AMENDMENT ONE TO THE
SKYWORKS WAFER SUPPLY AND SERVICES AGREEMENT
(the “ Amendment One ” ) is entered
into as of May 2, 2003 (the “Amendment One
Effective Date” ) by and between JAZZ SEMICONDUCTOR, a Delaware limited
liability company ( “ Jazz ” or
“Company” ) ,
and SKYWORKS
SOLUTIONS, INC., a Delaware corporation (
“Skyworks” ).
RECITALS
A.
Conexant Systems
, Inc.
(“Conexant”), Company, and
Carlyle Capital Investors ,
L.L.C. entered into a Contribution Agreement dated
February 23, 2002 pursuant to which Conexant contributed to Company the assets
used to provide specialty process foundry services and to
manufacture semiconductor wafers at a facility in Newport Beach,
California (the “Newport Beach Fab”
).
B.
A WAFER SUPPLY AND SERVICES
AGREEMENT was entered
into as of March 30, 2002, by
and between CONEXANT SYSTEMS
, INC. , a Delaware corporation ( “
Conexant ” )
, and SPECIALTYSEMI , INC. , a Delaware corporation currently known as Jazz Semiconductor (the
“CNXT Supply Agreement” ) .
C.
Skyworks
was formed in June , 2002 through the completion of the merger
between Alpha Industries, Inc. and Conexant’s wireless
communications business and Skyworks, under a separate agreement
with Conexant dated June 25, 2002, agreed to assume a portion
of the volume commitment set forth in the CNXT Supply Agreement and
undertook other related obligations (“SWKS CNXT Supply
Agreement ”). Jazz acknowledges the Skyworks wafer
purchases to date have been counted toward Conexant’s volume
commitment as set forth in Section 2.1(f) of the
CNXT Supply Agreement.
Section 2.1(f) of the CNXT
Supply Agreement is attached for reference purposes as
Exhibit H.
D.
The CNXT Supply Agreement contains
Section 2.1 (f) (iii) ,
stating each Conexant Spin-off (a
“Participating Spin-off” ) may enter
into a separate agreement with Jazz containing all of the terms and
conditions of the CNXT Supply Agreement. Skyworks acknowledges that
the SWKS CNXT Supply Agreement specifically excludes
Section 2.1(f) (Purchase for Certain Entities) and 6.2
(Wafer Credits). Pursuant to Section 2.1(f)(iii) of the CNXT Supply
Agreement , Skyworks and Company entered into THE
SKYWORKS WAFER SUPPLY AND SERVICES AGREEMENT ( the “SWKS Supply Agreement ” ) as of May 2,
2003.
E .
Skyworks and Jazz wish to modify
certain terms contained in the SWKS Supply Agreement regarding (1) the
Jazz Wafer Capacity
Commitment; (2) the
[. . . *** . . .] for the
manufacturing of the Skyworks silicon demand; (3) second
sourcing for the manufacturing of Skyworks silicon demand; and (4) Contract
Pricing. Skyworks desires a longer term and more definitive
additional capacity assurances, and Jazz desires a more definitive
commitment regarding the manufacturing requirement for Skyworks
’ product demand
.
NOW, THEREFORE
, in consideration of the mutual
covenants and agreements contained in the SWKS Supply Agreement, and in this Amendment
One, the Parties agree as follows:
1
AGREEMENT
1.
Definitions
. Capitalized terms not expressly
defined elsewhere in this Amendment
One have meanings as set forth in this Section 1, or if
not listed in this Section 1
then as set forth in the SWKS
Supply Agreement. All references to
“Section” shall be to the sections of this Amendment
One, unless expressly stated otherwise.
1.1.
“ China Fab ”
means either i) the ASMC fabrication facility that Jazz establishes
in China or ii) the SMIC fabrication facility that Jazz establishes
in China.
1.2.
“ Customer Qualification
Requirement ” means a requirement imposed on Skyworks by
a Skyworks ’ customer. By
way of example, the Customer Qualification Requirement
may include specific requirements for fabrication, such as the
location and ownership of a second source fabrication
facility.
1.3.
“ Initial Standard
Yield ” means, for each semiconductor part in
production on the Amendment One
Effective Date (excluding those identified in Exhibit
K ), the standard yield set forth
in Exhibit A. For a new semiconductor part having a first
production after the Amendment One
Effective Date , the Initial Standard
Yield shall be established as the numerical average of the
Probe Yield from the first [. . . *** . . .] production lots
, provided the
[. . . *** . . .] production lots have a standard deviation in Probe
Yield of [. . . *** . . .]
or less.
1.4.
“ Jazz Fabs ”
mean the (1) Newport Beach Fab facility located in Newport
Beach ; and (2) the China
Fabs.
1.5.
“ Move ” means
the completion of an individual stage in the process of fabricating
a Wafer at any Jazz Fab as described in SWKS Supply Agreement Exhibit B,
Schedule 2.2
1.6.
“ Party ” means
either Skyworks or Jazz
, individually, as the context requires, and Parties means
Skyworks and Jazz ,
collectively.
1.7.
“ Process Mix ”
means the particular combination of process technologies
featured within an offered process
classification available at the Jazz Fabs.
1.8.
“ Probe
Yield ” is calculated for each wafer as the number of
good dies electrically tested and passed at probe versus the total
number of die expected to be capable die on the tested
wafer.
1.9.
“ Part ” or
“ Semiconductor Part ” means a Skyworks
semiconductor device with a unique part number based on the
traditional assignments of part numbers by Skyworks to
date.
1.10.
“ Reset Standard Yield
” means the yield value determined in a yield update as set
forth in Section 11.3.
1.11.
“ Standard Yield
” means the Initial Standard Yield or, if the yield for a
semiconductor part has been reset pursuant to a yield update,
then the Standard Yield means the Reset Standard Yield.
1.12.
“Uncommitted Available
Capacity” means, at
any given time, the capacity controlled by Jazz that is uncommitted
after excluding all capacity necessary to fulfill Jazz’s
commitments under this Wafer Supply Agreement, the CNXT Supply
Agreement (excluding the Skyworks Purchase Obligation), and Jazz
contractual obligations to other third parties under supply
agreements or purchase orders previously accepted by
Jazz.
1.13.
“ Wafer ” means
a semiconductor wafer to be processed, prepared, and tested at
a Jazz Fab, and includes a variety
of individual semiconductor parts including Production Wafers,
Pizza Mask Wafers, and Risk Materials.
2
1.14.
“ WSPD ” means
Wafer Starts Per Day, and is a number of Wafers that
may commence processing in a single day at the Jazz
Fabs.
1.15.
“ Standard Delivery
Schedule ” means the number of calendar days to
manufacture a part using the cycle times set forth in
Exhibit I, and starting from the Jazz confirmed start
dates.
2.
Requirement and Forecast
for [. . . *** . . .]
2.1.
For the first 90 days following the
Amendment One Effective Date Skyworks shall use its commercially
best efforts to place orders for
[. . . *** . . .] in accordance with
the forecast by Skyworks as set forth in exhibit L.
2.2.
Within thirty (30) days after the
Amendment One Effective Date and
[. . . *** . . .] prior to the start
of each [. . . *** . . .] thereafter,
Jazz shall provide a
[. . . *** . . .] rolling report for
the anticipated need for
[. . . *** . . .] WSPD to load the
Newport Beach Fab (“the Anticipated Load”). After the
time period of Section 2.1, Skyworks shall place orders for
[. . . *** . . .] Wafers up to the
Anticipated Load, but not to exceed Skywork’s requirements
for [. . . *** . . .] parts qualified
at the Newport Beach Fab. Skyworks shall use diligent commercially
best efforts to qualify existing and new
[. . . *** . . .] parts at the
Newport Beach Fab. If, in any month after
[. . . *** . . .], Jazz fails to
achieve [. . . *** . . .] days per
layer cycle time on at least
[. . . *** . . .]% or better of
[. . . *** . . .] lots, then Skyworks
shall be relieved of its obligation to place orders for any
[. . . *** . . .] parts under this
Section 2.2. Skyworks shall resume
its purchases under this Section when the cycle time has
improved to [. . . *** . . .]
days per layer cycle time on at least
[. . . *** . . .]% of
[. . . *** . . .] lots or
better.
2.3.
Forecast
2.3.1.
Initial
Forecast . Exhibit L
is the initial forecast for Skyworks’ projected total WSPD,
which will be updated according to the procedure set forth in
Section 2.3.2.
2.3.2.
Rolling Forecast
. Skyworks shall provide to Jazz a
[. . . *** . . .] rolling forecast by
[. . . *** . . .]. The rolling
forecast will provide an estimate of Skyworks’ projected
total WSPD requirements for each
[. . . *** . . .], and will allocate
the total WSPD requirements according to fab-only Wafers and
fab/probe Wafers. By way of convention, the forecast months will be
referred to as follows in a
[. . . *** . . .] rolling
forecast:
[. . . *** . . .]
2.4.
Volume Commitment
. Skyworks hereby makes a volume
commitment to the WSPD in each
[. . . *** . . .] rolling forecast
according to the following schedule ( the “ Skyworks Wafer Volume
Commitment ” ) . Skyworks acknowledges and
affirms the Skyworks Wafer Volume Commitment for any
[. . . *** . . .] shall not be less
than the “take or pay” purchase obligations set forth in
Section 2.1 of the SWKS
Supply Agreement ( the “
Skyworks Purchase Obligation ” ), provided Jazz
makes a capacity commitment sufficient to meet the “take or
pay” Skyworks Purchase Obligation.
2.4.1.
[. . . *** . . .]
of the forecast WSPD at the forecasted Process Mix, but in no event
less than the Skyworks Purchase Obligation .
3
2.4.2.
[. . . *** . . .]
of the forecast WSPD , but in no
event less than the Skyworks Purchase Obligation, but Skyworks
reserves the right to adjust the Process Mix within the available
capacity of each process in the Jazz Fabs .
2.4.3.
[. . . *** . . .]
of the forecast WSPD , but in no
event less than 100% of the Skyworks Purchase Obligation, but
Skyworks reserves the right to adjust the Process Mix within the
available capacity of each process in the Jazz Fabs.
2.4.4.
[. . . *** . . .]
of the forecast WSPD , but in no
event less than 100% of the Skyworks Purchase Obligation, but
Skyworks reserves the right to adjust the Process Mix within the
available capacity of each process in the Jazz Fabs.
2.4.5.
[. . . *** . . .]
But for the Skyworks Purchase Obligation, Skyworks makes no
commitment to any WSPD or particular Process Mix for
[. . . *** . . .].
2.5.
Credit Against CNXT
Supply Agreement . Jazz
shall continue to expressly credit Conexant for Conexant’s
volume commitment as set forth in Section 2.1(f) of the
CNXT Supply Agreement for all purchases of Wafers by Skyworks (the
“Contract Credit”) under the SWKS Supply Agreement and
any amendments thereto including this Amendment One. However, upon
a showing by Skyworks that Conexant is not applying the Contract
Credit to the SWKS CNXT Supply Agreement, Jazz will, upon
Skywork’s request, provide to Conexant evidence of Skyworks
qualifying purchases. Jazz agrees to credit Skyworks for payments
Jazz receives from Skyworks, and further agrees to credit Skyworks
that portion of Conexant’s volume commitment that Conexant
claims as originating from Skyworks; and Jazz agrees not to accept
a double payment for that portion.
2.6.
Cycle Time
Increase .
2.6.1.
Exhibit I sets
forth target cycle times for parts and may be updated by
written mutual consent of the parties. For any increase in a target
cycle time that may increase the Standard Delivery
Schedule for a part by more than [. . . *** . . .] days,
Jazz shall make commercially reasonable efforts to provide a
minimum of [. . . *** . . .] advance written notice to Skyworks,
and Skyworks will use commercially reasonable efforts to update
Exhibit I to reflect the increase in the cycle time and to
accommodate the increase into its Wafer forecast. If the Purchase
Order process reflects a decrease in cycle time for any
part other than for expedited or priority lots, then the
Parties agree to cooperate to update Exhibit I to reflect the
decreased cycle time. The updated cycle times in Exhibit I
will become the new target cycle times.
2.6.2.
Jazz shall make
commercially reasonable efforts to maintain a cycle time for each
part that is no more than [. . . *** . . .]
% over the target cycle time for that
part as set forth in Exhibit I, as
updated.
2.6.3.
If any part has a delay in
delivery of more than
[. . . *** . . .] days in the Standard Delivery Schedule for that
part, then Skyworks may reduce its Wafer Volume Commitment by
a number of Wafers equal to the percentage increase in cycle time
as compared to the Cycle Times set forth in Exhibit I
multiplied by the WSPD of the part having the increase, and
Skyworks may move such Wafers to a non-Jazz fab facility;
provided, however, that any Wafer reduction may be used to
reduce the Wafer Volume Commitment only for (i) the part(s)
experiencing the cycle time increase or (ii) parts having a
similar mix in technology as the part(s) having the cycle time
increase, or if neither (i) or (ii) is reasonably
available to Skyworks to move taking into account limitations
Skyworks may have due to customer qualification issues, then
(iii) any part(s) by mutual agreement taking into account
Skyworks customer qualification requirements. Notwithstanding the
foregoing, (i)
4
Skyworks may not
reduce its Wafer Volume Commitment if such part delay was
caused by changes requested by Skyworks; and ii) Skyworks, for a
period of [. . . *** . . .] days, may not reduce its Wafer
Volume Commitment for a part under this section if
Skyworks failed to maintain a loading variance equal to or less
than [. . . *** . . .]% week to week. Skyworks will resume the
wafers that were removed at the start of the next month after which
the bottleneck has been cleared and cycle times have returned to
the Exhibit I cycle times.
3.
Capacity
3.1.
Initial Capacity
Commitment. Exhibit M sets forth the initial capacity
commitment by Jazz, which will be updated according to the
procedure set forth in Section 3.2.
3.2.
Wafer Capacity
. Within
[. . . *** . . .] of receipt of the
Skyworks rolling forecast in accordance with Section
2.3.2, Jazz, for each
[. . . *** . . .] in the then current
rolling forecast, shall provide in writing a rolling capacity
commitment identifying the Jazz Fab at which each product will be
manufactured (the “ Jazz Wafer
Capacity Commitment ”) . Jazz shall use commercially reasonable efforts to
provide a Jazz Wafer Capacity Commitment sufficient to meet the
Skyworks rolling forecast for each
[. . . *** . . .] . The capacity commitment by Jazz shall not be
less than the commitment provided the
[. . . *** . . .], unless
Skyworks’ forecast decreases for the commitment period, and
then the Jazz Wafer Capacity Commitment may only decrease to
the decreased amount. Should Skyworks increase a forecast from the
previous [. . . *** . . .], and Jazz
confirms the higher forecast amount, the Jazz Wafer Capacity
Commitment will then be set at the confirmed higher forecast
amount. If Jazz is unable to provide
Skyworks with a capacity commitment sufficient to meet the Skyworks
forecast, then Skyworks may reduce its forecast by the amount
of the capacity shortfall and move such Wafers to a non-Jazz fab
facility; provided, however, that any Wafer reduction may be
used to reduce the forecast only for (i) part(s) for which
Jazz failed to meet Skyworks’ forecast or (ii) part(s)
having a similar mix in technology as the part(s) for which Jazz
failed to meet Skywork’s forecast, or if neither (i) or
(ii) is reasonably available to Skyworks to move taking into
account limitations Skyworks may have due to customer
qualification issues, then (iii) any part(s) by mutual
agreement taking into account Skyworks customer qualification
requirements.
3.3.
The Jazz Wafer Capacity Commitment shall be in addition to any
shortfall capacity, if any, that Jazz provides to meet a Wafer
shortfall. By way of example, a Wafer shortfall may be due to
a failure to meet the yield guarantee of Section 11.1, a failure to
meet the Jazz Wafer Capacity
Commitment in a prior
[. . . *** . . .], a failure to meet
quality requirements, or a process interruption and/or
failure.
3.4.
Process Changes
. Any process change must be in
accordance with the Process Change
Notification (PCN) procedures set forth in
Exhibit G.
3.5.
Probe Capacity
. Jazz shall offer to Skyworks probe capacity that has been
qualified by Skyworks. For purposes of this Amendment, qualified
probe capacity shall mean that probe capacity at a particular probe
location that has passed Skyworks quality processes, and for which
Skyworks has provided Jazz a notification of such qualification.
Jazz shall allocate probe capacity at the Jazz Newport Beach
Facility in proportion to the Skyworks wafer loading at the
Jazz Newport Beach Facility as
compared to the total Capacity at
the Jazz Newport Beach Facility.
If additional probe capacity is needed in excess of that available
at the Jazz Newport Beach Facility, when considering wafer loading,
then Jazz shall notify Skyworks of the quantity
5
of Wafers that need the additional
probe service, and Skyworks may either (1) provide fab
only purchase orders above the Skyworks Wafer Volume Commitment and assume
all costs, and logistical and engineering responsibilities related
to the probe of such wafers; or (2) Jazz shall arrange for,
and Skyworks shall bear the [. . . *** . . .] costs associated
, with probe service using a probe
service provider pre- approved by
Skyworks in writing. Within sixty
( 60 ) days of receiving
the notice of additional probe service needs, Skyworks
may notify Jazz that the quantity of Wafers that need
additional probe services will be accepted as fab-only Wafers
. Jazz shall further provide
Skyworks with sixty (60) days
advance notification for new products being transferred to a
new probe location and thirty (30) days
advance notification for existing products with established
test programs qualified at Jazz. No more than one product per
month, and not to exceed two per quarter, will be transferred
to a second probe location unless mutually agreed upon in writing or electronic mail . Skyworks shall
provide thirty ( 30 ) day advance written notice of change in any
wafer probe time/test program of more than ten percent ( 10% ) . If
Skyworks gives less than thirty (30)
days notice for an increase in probe time/test program of
more than 10%, at Skyworks request, Jazz will use commercially
reasonable efforts to reallocate test resources in a way to
accommodate Skyworks test needs, provided that (i) Skyworks ’ products stay within the Probe Test
Capacity allocated to Skyworks and (ii) the Skyworks Wafer Volume Commitment shall not be reduced
due to the reallocation and (iii) the invoicing by Jazz and payment
by Skyworks for delayed lots due to the reallocation shall be in
accordance with the original shipping schedule.
3.6.
Priority of Commitment
. The Jazz
Wafer Capacity Commitment shall be made with consideration
of the cycle times required by Skyworks, as set forth in
Exhibit I. Under no circumstance shall Jazz knowingly commit
to deliver to Skyworks an overall capacity, when considering all
Jazz customers, in excess of its actual Capacity for any
[. . . *** . . .].
3.7.
Provided Skyworks has cooperated
with the [. . . *** . . .]
Qualification requirements as described in Exhibit E, Skyworks
may Submit purchase orders to Jazz and Jazz shall accept such
Purchase Orders, at the price and upon the terms and conditions
contain herein, up to the Uncommitted Available Capacity at the
time of receipt of such Purchase Order.
4.
[. . . *** . . .]
4.1.
Currently Manufactured
Parts. Only for the
[. . . *** . . .] following the
Amendment One Effective date, Jazz’s
[. . . *** . . .] for the
manufacturing of the parts identified in Exhibit J -1, shall
not be subject to the conditions and or limitations of
section 4.2.
4.2.
Volume . Subject to the limitations of this paragraph,
Skyworks will [. . . *** . . .] on a
part-by-part basis.
[. . . *** . . .] will not apply to
(i) the semiconductor parts
identified on Exhibit J –2,
(ii) any .18um or smaller CMOS - technology
(iii) provided Skyworks is fully
cooperating, as set forth in Exhibit E, with the qualification
of [. . . *** . . .]
, that portion of Wafers moved by
Skyworks to a non-Jazz fab pursuant to Section 3.2, and
(iv) any part, or derivative of that part, for which Jazz had
a [. . . *** . . .]
and
[. . . *** . . .] was released. Jazz’s
[. . . *** . . .] shall be effective
provided Jazz is competitive in price, technology, time of
delivery, delivery performance, meeting Customer Qualification
Requirement, cycle times, quality, and comparable yield performance
for similar volumes of such parts. Absent a Skyworks Customer
Qualification Requirement, Jazz’s
[. . . *** . . .] for the
semiconductor parts identified on Exhibit J-3 shall be
effective provided Jazz is competitive in price, technology, time
of delivery, delivery performance, cycle times, quality, and
comparable yield performance for similar volumes of such
parts.
6
4.2.1.
Jazz may periodically, or upon
Skyworks request, not to exceed once per quarter, provide to
Skyworks a projection of available capacity. The projection shall
include pricing for the available process technologies. The
projection shall also provide a projection of probe capacity and
probe pricing.
4.2.2.
At the time Skyworks firmly
identifies a fabrication need for a semiconductor part subject
to the [. . . *** . . .] of
Section 4.2, Skyworks shall give
[. . . *** . . .] to Jazz.
Skyworks shall notify Jazz of the
fabrication need using a request for quotation process, and Jazz
shall respond in the time allotted in the request, and in no event
less than [. . . *** . . .]
. Skyworks shall notify Jazz
within [. . . *** . . .] of
determining that any fabrication requirement subject to the
[. . . *** . . .] may be awarded
to any foundry other than a Jazz facility and identify the basis
for such decision
[. . . *** . . .] The
[. . . *** . . .] notice shall be
made by Skyworks in good faith, and be based on
[. . . *** . . .] for similar volumes
of such parts. Both Parties agree to operate in good faith
, to make commercially reasonable
efforts to resolve issues in a timely manner. The
[. . . *** . . .] notice to Jazz shall include non-confidential
information regarding the specific reason(s) for the
[. . . *** . . .] , which may include information regarding
[. . . *** . . .]. Within three
(3) business days of receiving such
[. . . *** . . .] notice, Jazz shall
either (a) [. . . *** . . .]
, or (b) provide Skyworks
with a revised Jazz proposal to
[. . . *** . . .]. If after the
submission of the revised Jazz proposal, Skyworks , in good faith, determines that the revised
Jazz proposal is not
[. . . *** . . .], Skyworks shall
notify Jazz thereof (“Second Notice”). If Jazz, in good faith, believes the revised Jazz
proposal to be [. . . *** . . .], then Jazz may request each
Party’s CEO (or, if unavailable, his or her designated member
of senior management) meet within ten (10) business days of the Second
Notice to review the reasons for such release or termination and to
allow for a final modification of
the Jazz proposal. If, after the CEO
meeting or upon expiration of the (10) ten business day
meeting period (if no meeting has been requested), Skyworks, in its
sole but good faith discretion, finds that Jazz is still not [. . .
*** . . .] as set forth in Section 4.2 then [. . . *** . . .]
for that part. Skyworks acknowledges that the
[. . . *** . . .] for the manufacture of the part shall be made
only after [. . . *** . . .] under the terms of this
Section.
4.2.3.
If Skyworks selects Jazz for the new
Wafer fabrication need, then Skyworks shall add the new
part to rolling forecast and provide for a wafer volume commitment as set forth in
Section 2.3.2, and Jazz shall provide a wafer capacity commitment for such
part as set forth in Section 3.
5.
Pricing .
5.1.
[. . . *** . . .]
Pricing . Provided Skyworks places orders in accordance with
Sections 2.1 and 2.2, then the
[. . . *** . . .] pricing shall be
determined as set forth in Exhibit B.
5.2.
Existing Product
Pricing (other than
[. . . *** . . .]):
5.2.1.
Basic Wafer Pricing for Existing
Products through November 1, 2005. Exhibit J-1 sets forth Existing Products.
Basic Wafer Pricing is exclusive of the pricing for Probe Services.
Basic Wafer Pricing for an Existing Product Lot shall be the Price
as set forth in Exhibit B.
5.2.2.
Basic Wafer Pricing for Existing
Products after November 1, 2005 . Exhibit J-1 sets forth Existing Products.
Basic Wafer Pricing is exclusive of the pricing for
Probe
7
Services. Basic Wafer Pricing for an
Existing Product Lot shall be the lower of: (1) Best Nation
Pricing pursuant to Section 5.2.2.1; (2) Market Pricing
pursuant to Section 5.2.2.2; or (3) the Basic Wafer Price
pursuant to Exhibit B, section 2.
5.2.2.1.
Best Nation Pricing
. Jazz agrees to provide Skyworks
pricing no greater than the Best Nation Pricing defined as equal to
the lowest priced customer for
similar technologies and volumes.
5.2.2.2.
Market Pricing
. Market Price may be reviewed
quarterly, and will be based on (1) the lowest verified
current price offered by
[. . . *** . . .] for similar
technologies and similar Wafer volumes; or (2) if Skyworks receives
[. . . *** . . .] , then the average of the verified lowest current
price of [. . . *** . . .] for
similar technologies and similar
Wafer volumes ; provided that if
the lowest price of
[. . . *** . . .] is
[. . . *** . . .] or more below the average of
[. . . *** . . .] , then Market Price will be set in accordance with
section (1).
5.3.
New Product Pricing
.
5.3.1.
Basic Wafer Pricing
New Products shall be all products
not identified on Exhibit J. Basic Wafer Pricing is exclusive
of the pricing for Probe Services. Basic Wafer Pricing for a New
Product Lot shall be the lower of: (1) Best Nation Pricing
pursuant to Section 5.2.2.1; (2) Market Pricing pursuant
to Section 5.2.2.2; or (3) Ceiling Pricing pursuant to
Section 5.3.2.
5.3.2.
Ceiling Pricing
. Exhibit B sets forth a
Ceiling Price for selected process technologies in production as of
the Amendment One Effective Date.
The Parties agree to meet in good faith to determine a Ceiling
Price for new process technologies put
into production after the Amendment One Effective Date , and
will update Exhibit B to add the Ceiling Price for these new
process technologies .
5.4.
Shuttle Pricing.
Shuttle pricing shall be as set
forth in Exhibit C.
5.5.
Budgetary Pricing.
Jazz and Skyworks shall meet in
[. . . *** . . .] to review Jazz
pricing issues, and Jazz will provide to Skyworks the Jazz pricing
roadmap.
5.6.
Probe Service Pricing.
Probe pricing for a Wafer shall be
set at of the price computed under the cost per test-hour as set
forth in Exhibit D, as amended